Payment of 600 Million Won to 60 Small and Medium Partner Companies This Year
Home&Shopping (CEO Il-yong Lee and Won-seop Lee) announced on the 23rd that it will implement a performance-sharing system worth a total of 600 million KRW for small and medium-sized enterprises (SMEs). Home&Shopping's performance-sharing system goes beyond simply sharing profits with high-performing partners and compensates for losses incurred by partners facing operational difficulties.
Through this performance-sharing system, which shares the results of 2022, Home&Shopping plans to support 60 partner companies with 10 million KRW each, totaling 600 million KRW. Since its launch in 2012, Home&Shopping has been implementing a performance-sharing system on excess profits starting from 2013, when it began generating significant profits.
Home&Shopping's performance-sharing system initially started as a program that refunds 10-20% of excess profits in cash to outstanding SME partners with high sales contributions compared to their annual targets. Since 2016, the system has shifted from returning excess profits to high-contributing partners to compensating losses for companies experiencing poor broadcast sales efficiency, and it has been operated annually in this manner.
Through the performance-sharing system, Home&Shopping has supported a total of 4.9 billion KRW to 522 SME partners from 2013 to the present. A Home&Shopping official stated, "SMEs tend to struggle even more when a recession begins," adding, "Home&Shopping will strive to provide more practical support so that SMEs can overcome economic downturns successfully."
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